It is evident as only two crude oil ships from Russia had arrived at the Karachi Port on June 11 and 26, after which no Russian oil ship had come to Pakistan…reports Asian Lite News
The import of crude oil from Russia has been suspended after more furnace oil was produced than petrol during the refining process, according to sources in the energy sector, The News International reported on Sunday.
The issue had gained political and diplomatic importance as Pakistan has always kept the exact price of Russian oil and its arrival secret, it reported.
According to industry sources, the Pakistan Refinery has given up refining of all the Russian oil for now despite the insistence of former state minister Musadik Malik.
As per The News International, Sources claimed that the Pakistan Refinery had refused to process more Russian oil, as less petrol was being produced from it with 20 per cent more furnace oil compared to the Arabian crude oil.
It is evident as only two crude oil ships from Russia had arrived at the Karachi Port on June 11 and 26, after which no Russian oil ship had come to Pakistan.
According to experts, if the prices of Brent crude oil and Arab Light Sea crude oil increase further and the price of Russian oil does not increase, only in such a case the purchase of Russian oil could be beneficial for Pakistan. But chances for such a situation are limited, the experts believe,The News International reported.
In a recent test case, Pakistan Refinery Limited (PRL) imported about 1,00,000 tons of crude oil from Russia. 50,000 tons has already been refined while the remaining is yet to be processed. The deal is considered to be a test case to understand the economics of Russian oil.
Crude oil purchases from the Middle East produces at least 45 per cent of High-Speed Diesel (HSD) and 25 per cent of furnace oil whereas Russian crude oil is expected to produce 32 per cent of HSD and 50 per cent of furnace oil.
However, the demand of Russian crude oil has gone down considerably in Pakistan because power plants have shifted to Liquefied Natural Gas (LNG).
Experts say, Pakistan has no market for Russian oil.
“Pakistan’s refineries can use Russian oil by blending it with Arabian crude. Otherwise, there is no market of Russian oil in Pakistan due to higher volumes of furnace oil produced by that crude,” said business market expert Zahar Bhutta.
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